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China Adopts Slow Approach
To $200 Billion Loan Problem

By

Craig S. Smith Staff Reporter of The Wall Street Journal

Updated Dec. 18, 1997 12:01 a.m. ET

SHANGHAI, China -- While much of Asia restructures tottering banking systems, China continues to take a slow approach to its own bad-debt problem: increasing funds set aside for loan write-offs to just $5 billion next year.

Wang Zhongyu, minister of the State Economic and Trade Commission, said China will increase the amount earmarked for the write-off of bad debts by just $1.4 billion in 1998 from the $3.6 billion set aside this...